Advertisements
Home Gold Prices Trump’s Shift in Tone Causes Gold Prices to Retreat—Has the Bull Run Ended?

Trump’s Shift in Tone Causes Gold Prices to Retreat—Has the Bull Run Ended?

by anna

Gold prices took a notable dip during the Asian session on Wednesday, falling over 1% to a low of $3,315 per ounce. The decline came after comments from President Donald Trump regarding tariffs and Federal Reserve Chairman Jerome Powell, which seemed to ease market concerns and reduce demand for safe-haven assets.

During Tuesday’s swearing-in ceremony for SEC Chair Gary Gensler, Trump voiced his disappointment with the Federal Reserve’s pace of interest rate cuts. However, he clarified that he had no plans to remove Powell from his position. “The media always messes things up. I’m not planning to fire him. I want to see him more aggressive on rate cuts,” Trump told reporters.

Advertisements

In addition to his comments on the Fed, the White House announced progress in tariff negotiations with Japan and India. Though final agreements may take months, Trump’s tone toward China showed signs of moderation. He indicated that tariffs on Chinese goods would not reach 145%, as previously feared, but would instead be reduced significantly, though they wouldn’t drop to zero.

Advertisements

This shift in Trump’s rhetoric has contributed to a decrease in market risk aversion, strengthening the U.S. dollar and boosting U.S. stock markets, while putting downward pressure on gold prices. After reaching a record high of $3,500 in the previous trading session, gold prices have since retreated. Current technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest that gold may be overbought, raising the possibility of a pullback to around $3,000.

Advertisements

Related topics:

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

【Contact us: [email protected]

© 2023 Copyright  lriko.com